Mountain Snow Sports,Inc

question 147

Multiple Choice

Mountain Snow Sports,Inc.is trying to determine the optimal order quantity for snow boards for the next twelve months.Annual sales are expected to be 1,000,000 units at a retail price of $400 each.The cost of carrying snow boards is $80 per year.Studies show that it costs Mountain Snow $250 to prepare and receive an order.What is the EOQ?

• A) 2,750
• B) 2,500
• C) 2,000
• D) 1,850

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Definitions:

Total Assets

The sum of all assets owned by a company, both current and non-current, used to calculate the company's financial health.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Sales Revenues

Income received from selling goods or services over a period of time.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.